Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) is pleased to announce the closing of the acquisition by CAP S.A. ("CAP") of its 20% equity ownership interest in REE Uno SpA ("REE Uno"), the Company's Chilean subsidiary that owns the Penco Module project, and receipt by the Company of the initial payment of approximately US$9.7 million in connection with such acquisition. The acquisition is made pursuant to the terms of the previously announced investment agreement entered into between CAP and Aclara on March 13, 2024 (the "Investment Agreement"). Under the terms of the Investment Agreement, payments are to be made in three tranches, of which the remaining two tranches in the amounts of US$12.5 million and US$6.9 million are to be made in January of 2025 and 2026, respectively
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Aclara Provides Exploration Results for Potential Second Module
Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) is pleased to announce drilling results completed over Verónica Norte (the "Project") located 45 km from Concepcion, Chile. The Project corresponds to a new target area approximately 45 kms south of the Penco Module Project.
Approximately 2,905 meters (m) from 125 sonic drill holes were completed in the Project in the second half of 2022 as part of an initial drilling campaign covering 982 hectares (Ha) of total target of 5,055 Ha (see Figure 1). The purpose of this initial drilling campaign was to confirm the depth extension of the positive results obtained from surface geological reconnaissance and geochemical sampling and to test the lateral extents of the mineralization.
The drill hole program:
- confirmed rare-earth elements (REE) mineralization recognized through geological work, including geochemical sampling continued at depth.
- recognized that the mineralization occurs mainly in the first 15m below surface, with an economic horizon of approximately 7m.
- confirmed that REE are highly absorbed into ionic clays resulting in a high percentage of REE exchangeable fraction recovery (see table 3).
- confirmed attractive recoverable values of the heavy rare earths (HREE,) Dysprosium and Terbium (DyTb), as well as the light rare earths, Neodymium and Praseodymium (NdPr).
- confirmed that the mineralization remains open on its lateral extents at different topographic levels.
Ramón Barúa, CEO of Aclara, commented:
"Initial exploration results at Veronica North represent the first step towards becoming a multi-modular HREE Company. As we progress, our in-house developed exploration model has proven highly effective in finding REE-enriched ionic clay deposits. We are very encouraged with these results and plan to continue with further drilling campaigns to unlock the full potential of the asset".
A location map is shown in Figure 1, where the full Veronica district is displayed covering approximately 13,122Ha in high priority drilling areas, comprising of Veronica Norte (5,055Ha), Verónica Centro (2,492Ha) and Veronica Sur (5,575Ha). The drilling campaign executed in 2022 is mainly concentrated in the north of Veronica Norte. Drill holes, averaging 25m in depth, intersected mineralization with TREY (total rare earth plus yttrium) economic grades; the interception length and average composite grades (ppm) of these intersections are shown in Table 1.
Figure 1. Plant view of Veronica Norte Project location (purple outline), red dots show drill holes of the 2022 campaign while grey dots represent previous drill holes in the area.
Patricio Irribarra, Head of Geology at Aclara, commented:
"The drill holes in the Veronica Norte area were designed to (i) confirm the presence of REE mineralization beneath the good results obtained during surface geochemical scan and sampling, (ii) test other targets in the area and finally, (iii) understand the geological factors that control the mineralization.
Verónica Norte displays different characteristics to the Penco Module, such as being a shallower yet potentially larger deposit, with lower grades but with a significantly higher exchangeable REE fraction with interesting levels of both DyTb and NdPr. We are encouraged that Veronica Norte mineralization remains open on its lateral extents at different topographic levels, generating new targeting zones and rewarding our exploration efforts. We have decided to continue with the drilling and sub-surface sampling in the Veronica Norte area, targeting other sectors to keep evaluating the site potential and its extension.
The areas of Veronica district were heavily impacted by the fires during February, which has put a temporary restriction to re-initiate drilling works. During the summer season, we will keep helping the affected communities on site as well as collaborating with forestry companies. We intend to resume greenfield campaigns at the appropriate time once we receive clearance from superficial land owners."
Geological Overview
The Project hosts rare earth elements mineralization absorbed into an ionic clay deposit, which is formed by the weathering of calc-alkaline with peraluminous signal rocks as protolith, containing REE bearing and accessory minerals such as monazite, allanite, and apatite, and as impurities in primary minerals. Due to surface weathering, REE containing minerals are decomposed, and ionized REEs are absorbed on the surface of clay minerals such as halloysite and kaolinite.
According to the geological mapping and the information obtained from the Veronica Norte 2022 drill hole campaign, the local geology is shown to be homogeneous, defined by two lithological Units (Figure 2B). Predominating in areal extent is biotite granitoid (TBT) and, to a lesser extent, in the northern portion of the area, a diorite (DRT). The chemical results of both Units do not show significant differences in grade values, implying a priori the lack of lithological control of the mineralization. Even though mineralized DRT tends to be richer in TREY, the extent of TBT in the area presents more interest, considering it also reaches potentially economic values of its exchangeable fraction. The regolith profile shown in Figure 2A is characterized not only by its observed geological criteria (texture, alteration grade, mineral composition), but also by its chemical data, which helps limit their extent, narrowing the horizon hosting the mineralization. Topography appears to control the formation and preservation of the mineralized horizon, being present at different topographic altitudes, where the exchangeable fraction of the mineralization is hosted at shallow depths (between the first 10-15 m).
As the mineralization is controlled mainly by the weathering/regolith development instead of the lithology, Figure 3A shows the 3D geological units, which will be used for eventual Mineral Resource estimation. These units are displayed in the cross section presented in Figure 3A and the map view in Figure 3B.
Figure 2. Northern Veronica Norte. (A) Cross section (A-A') exhibiting association between the lithology and regolith on the area, and some holes displaying TREY in ppm. (B) Plan view showing associated geology and regolith extension through 3D modeling. A yellow trace line indicates the location of the cross-section displayed in "A." The black contour represents the delineated interest area that has been modeled and the white dots represent drill holes in the area. The image shows that the mineralized horizon (M) found at Veronica Norte is controlled by the development and conservation of favourable regolith horizon at certain topographic levels where continuity is exhibited. The mineralization is found at shallow depths (approximately first 10 - 15 m from the surface).
Figure 3. Northern Veronica Norte. (A) Cross section (A-A') showing geological units defined by favourable regolith. P, upper-medium pedolith; M, medium-lower pedolith; S, upper-lower saprolith; R, saprock and bedrock. Some holes display TREY exchangeable fraction (B) Plan view showing associated geology and regolith horizons. The yellow trace line indicates the location of the cross-section displayed in "A." The black outcrop contour represents the delineated areas of interest that have been modeled to date.
Sampling and Assay Protocols
The 125 sonic drill holes were sampled in intervals of 0.8m to 2m, for a total of 1,827 samples, which had been sent for TREY analysis to ALS, and desorption TREY Analysis to AGS. Sampling and analytical protocols are unchanged from the Penco Technical Report, which was identified to be in line with standard industry practice. The QA/QC program indicates high levels of precision and accuracy for Dy, Tb, Nd, Pr and Lu. Overall, the database for total grades similarly shows high precision and accuracy.
Qualified Person and technical help
The technical information in this news release, including the information related to geology, drilling, and mineralization, has been reviewed and approved by Luis Oviedo, an independent Consulting Geologist with more than 45 years of experience. Mr. Oviedo is a member of the Colegio de Geólogos de Chile and the Comisión Calificadora de Competencias en Recursos y Reservas Mineras (Institute of Mining Engineers of Chile) and is an Independent Qualified Person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects ).
The QP confirms that he visited the project area on January 26, 2023 and was supported by the Head of Geology at Aclara, Patricio Irribarra, and colleague Rene Henriquez, who reviewed and analyzed the relevant project information. Carlos Santos, Database and QA/QC Geologist of the company provided an analysis of the QA/QC work over the Veronica Norte deposit.
For further information, please contact:
Ramon Barua
Chief Executive Officer
investorrelations@aclara-re.com
Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including statements with regard to mineral continuity, grade, and upside at the Veronica Norte zone, the issuance of an updated Mineral Resource statement, and the contemplated development of greenfield targets and expected reduction in permitting risk. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the Company's annual information form dated as of March 30, 2022 filed on the Company's SEDAR profile. Actual results and timing could differ materially from those projected herein. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this news release is provided as of the date of this news release and the Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
Table 1: Summary of Veronica Norte Drill Hole results
Table 2: Summary of Veronica Norte Drill Hole with exchangeable fraction (desorption) results
Table 3: Comparison of whole rock and exchangeable fraction results for desorbable mineralized lenght
Notes:
- TREY = Total rare earth plus yttrium
- REYd = Desorption rare earth plus ytrium
- Dy + Tb = Dysprosium plus terbium
- Pr + Nd = Praseodymium plus neodymium
- The boreholes in bold letters are shown in the cross sections
- All holes are vertical and interval thickness approximates true thickness.
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Aclara Resources
Overview
Aclara Resources (TSX:ARA), a heavy rare earth element (HREE) exploration and development company, is on a quest to reinvent rare earth mining as a climate-friendly industry, sustainably supplying these critical metals the world requires to achieve a low-carbon future.
Through its ionic clay asset in Chile, Aclara is testing its innovative, patented Circular Mineral Harvesting Process, a unique, sustainable extraction method developed in collaboration with the University of Toronto and the University of Concepción in Chile.
The mining industry has long-endured a negative public reputation. But recent efforts, such as the World Bank’s Climate-Smart Mining Initiative, are hoping to reshape the mining industry as a sustainable, vital partner in achieving the world’s net-zero emissions goals. The Climate-Smart Mining Initiative sets out guidelines to improve sustainability and minimize the environmental impact of mining operations.
Aclara Resources aims to be at the forefront of this movement.
Clean technologies, such as electric vehicles and wind turbines, require rare earth elements to manufacture the powerful magnets they need. However, while rare earths are technically abundant in the Earth’s crust, there are few economically viable deposits worldwide, outside of Southern China and Myanmar. Ionic clay deposits, known as ionic adsorption clay (IAC), have three special characteristics, (1) contain high value of scarce heavy rare earths (HREE), (2) generate no radioactivity, and (3) have simple metallurgy allowing for low costs and capital expenditures.
IAC are major contributors to the world’s total HREE output. For years, the only significant IAC deposits outside of China have been Ionic Rare Earth’s Makuutu project in Uganda, and Sierra Verde in Brazil. Fortunately, that’s about to change.
Aclara Resources’ Penco Module, the company’s flagship asset in Chile, contains ionic clays rich in both heavy rare earths and light rare earths. The project will be a testing ground for its Circular Mineral Harvesting Process for further optimization for future projects. This advanced extraction process does not use explosives, crushing or milling, nor produce liquid residues.
The extraction process advances Aclara’s mission of becoming a leader in climate-smart mining practices. The Circular Mineral Harvesting Process requires no tailings dam, prioritizes revegetation with native species, recirculates up to 95 percent of water used and 99 percent of the main reagent (a common fertilizer that recovers the rare earths from the clays). This transformative new process led to the company earning the 2022 Sustainability Initiative of the Year award and the 2023 Innovation Award from SEAL Awards.
Aclara ran a successful piloting operation for the Penco Module project from June to August 2023. The Company processed a total of 120 tonnes of ionic clays and produced approximately 107 kilograms of wet high purity Heavy Rare Earth Elements. The piloting operation was a pivotal element of Aclara's commercial strategy, resulting in the production of representative product samples that have been sent to more than ten separation companies across the United States, Europe, and Asia.
On April 28, 2023, the Company announced the submission of an Environmental Impact Assessment (EIA) for the Penco Module project. Unfortunately, Aclara received notice from the Environmental Assessment Service in Chile of its decision to terminate the review of the Company’s application for an environmental impact assessment based on the findings of CONAF that there are six (6) “naranjillo” trees, located in the area of the Project. The Company, together with its technical consultants and other advisors, is working together with the relevant authorities to comprehensively address the initial observations at this early stage of the New EIA process.
In parallel to the Penco Module development, Aclara intends to identify further opportunities for increasing rare earth element production. This involves intensive greenfield exploration programs and the development of additional project "modules". In March 2023, the company shared exploration updates from its operations in Brazil. Based on initial positive results obtained from the surface mapping campaign, the Company staked approximately 369,410 Ha of mining concessions and defined five high-priority targets for further exploration work. In addition, pursuant to the earn-in agreement described below, the Company has the right to acquire an additional 8,490 Ha of mining concessions, where two additional high-priority exploration targets were defined. The Company has designed drilling campaigns, which are underway, for two high-priority targets with respect to the concessions subject to the earn-in agreement. The Company will update the market accordingly once the drilling works have been completed.
Aclara Resources’ management team has diverse expertise throughout the natural resources sector. Experience includes project financing, rare earth project development, corporate management and international law. The range of experience builds confidence in the team’s ability to lead the company toward its goals.
Company Highlights
- Aclara Resources is a heavy rare earths company developing its ionic clay deposit in Chile.
- The company’s unique, patented process, known as Circular Mineral Harvesting is a closed-circuit that extracts heavy rare earth elements (HREE) in a clean way. 95 percent of the water used and 99 percent of the main reagent (a fertilizer) are recirculated, eliminating the need for a tailings dam and conditioning the spent clays for future revegetation with native trees.
- The company will only source water for its Penco Module operations from recycled water.
- In June 2023, the company announced the production of the first sample of high-purity HREE concentrate from its pilot plant.
- Aclara owns a large concessions land package of 451,985 hectares that allows organic growth (Penco Module is situated on only 600 hectares).
- Exploration plans to incorporate additional modules are already underway.
- With $67 million in cash, Aclara’s main shareholders are Pelham Investments and leading precious metal producer Hochschild Group, with a 36.7 and 20 percent stake in the company, respectively.
- Aclara was awarded the 2022 Sustainability Initiative of the Year Award and the 2023 Innovation Award for its Circular Mineral Harvesting process.
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Aclara Announces the Closing of the Transaction with Cap and the Receipt of Initial Payment of Us$9.7M as Part of the US$29.1M Strategic Investment
Transaction Summary
- A US$29.1 million capital contribution by CAP into REE Uno, Aclara´s Chilean subsidiary which owns the Penco Module and all of Aclara´s mining concessions in Chile, in exchange for a 20% equity participation in REE Uno. Following payment of the initial tranche of US$9.7 million, the remaining tranches in the amounts of US$12.5 million and US$6.9 million are to be paid in January of 2025 and 2026, respectively. This initial investment by CAP represents a pre-money valuation of REE Uno of US$116.5 million.
- An option to invest an additional US$50 million in REE Uno for an additional 20% equity interest in REE Uno once the requisite environmental permit is secured for the Penco Module. Upon completion, this additional investment would allow CAP to attain a 40% equity interest in REE Uno. This second investment represents a pre-money valuation of REE Uno of US$150 million.
- A three-year option to invest up to 19.9% in Aclara by participating in any private placement or public offering of shares that Aclara may make during the next 36 months, including a residual top-up right to maintain pro rata voting rights. Any subscription to such private placement or public offering will be made on the same terms offered by Aclara to other investors. CAP will have the right to nominate one board member upon attaining and for so long as its equity interest in Aclara amount to at least 15% of the issued and outstanding common shares of Aclara. In addition, CAP holds a one-time demand subscription right to invest up to an aggregate of 19.9% in Aclara, exercisable upon the satisfaction of certain conditions and continuing for a maximum period of 18 months counted from the end of the initial 3-year option.
- The formation of a 50/50 joint venture to develop metals and alloys for the rare earths permanent magnet industry. CAP will invest US$3.0 million in exchange for its 50% of the shares of the newly established joint venture company. Aclara will own the other 50% of the shares.
Aclara Corporate Structure after the Completion of the Transaction with CAP
Transaction Benefits to Aclara
Funding
The US$29.1 million initial capital injection from CAP into REE Uno will support the ongoing development of the Penco Module throughout its permitting, community relations, and feasibility study phases. This allocation will allow Aclara Resources to reallocate its current cash reserves towards advancing its Carina Module project in Brazil.
The option for an additional US$50 million investment post-receipt of the environmental permit is intended to cover a significant part of the equity portion associated with the construction of the Penco Module. This provision mitigates financing risks linked to the module's construction for Aclara.
Permitting
Drawing upon CAP's extensive experience in environmental permitting from multiple mining projects in Chile, Aclara anticipates strengthened support for the forthcoming Environmental Impact Assessment permit application in respect of the Penco Module. CAP's involvement includes a thorough review and constructive contributions to the application preparation, as well as accompanying Aclara throughout the review and approval process by Chilean environmental agencies.
Vertical Integration
Furthermore, the establishment of a metals and alloys company represents a crucial step of Aclara's strategic vision to vertically integrate its rare earths concentrate production towards the manufacturing of permanent magnets. The newly formed joint venture company will harness CAP's substantial expertise in metal refining and ferro-alloyed special steels, synergizing with Aclara's thorough understanding of the rare earths and permanent magnet industry. The joint venture with CAP is intended to supplement the Company's efforts in developing independent rare earth separation capabilities in the United States through its U.S. subsidiary, Aclara Technologies Inc., as previously announced on April 10, 2024, and to further position Aclara as a source of geopolitically independent alternative supply of permanent magnets to the global market.
Valuation
The transactions contemplated under the Investment Agreement (the "Transaction") reflects the valuation of Aclara at the time of the Company's initial public offering (the "IPO") and is indicative of the belief both parties have in establishing Aclara as a leading producer of clean rare earths.
Upon closing, REE Uno has been valued at US$116.5 million on a pre-money valuation. In addition, Aclara will own 50% of the newly established joint venture company, which has a valuation of US$3.0 million. In total, the Transaction represents an aggregate valuation reflecting the Company's pre-money valuation at the IPO of US$119.5 million.
It's noteworthy that Aclara's Brazilian subsidiary, Aclara Mineracao, which oversees the Carina Module and all mining concessions in Brazil, is not part of the Transaction nor included in the valuation mentioned above. This aspect adds further value to Aclara Resources and its shareholders.
About CAP
CAPS.A., a company with more than 77 years of history and listed in the Chilean Stock Exchange since 1987, is the parent company of the CAP Group, a Chilean conglomerate operating in various industries including iron ore mining (CMP), with mines and industrial operations in the north of the country, as well as in Concepcion, in proximity to the Penco Module. CAP is one of the leading high-grade iron ore producers in the world with four operating mines in Chile. In addition, CAP has several steel product manufacturing plants in Chile, Peru and Argentina. It operates five ports, a seawater desalination plant and has vast industrial infrastructure in the Biobio region. CAP has a strong connection with the people of the Biobío region, where it has been a major employer for several decades, contributing directly to the development of the south of Chile.
About Aclara
Aclara Resources Inc. (TSX:ARA) is a development-stage company that focuses on heavy rare earth mineral resources hosted in Ion-Adsorption Clay deposits. The Company currently has two projects under development: the Penco Module in the Bio-Bio Region of Chile, and the Carina Project in the State of Goiás, Brazil.
Aclara's rare earth extraction process offers several environmentally attractive features. It does not involve blasting, crushing, or milling, and therefore does not generate tailings, thus eliminating the need for a tailings storage facility. The extraction process developed by Aclara minimizes water consumption through high levels of water recirculation made possible by the inclusion of a water treatment facility within its patented process design. The ionic clay feedstock is amenable to leaching with a common fertilizer, ammonium sulfate. Further, harmful levels of radionuclides, typical of hard rock rare earth deposits, are not concentrated within the Aclara flowsheet.
Simultaneously, alongside the development of the Carina and Penco projects, the Company intends to identify and evaluate further opportunities to increase future production of heavy rare earths. This will involve greenfield exploration programs and the development of additional projects within the Company's concessions in Brazil, Chile, and Peru.
Forward-Looking Statements
This press release contains "forward-looking information" within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including statements with regard to: the Company's strategic investments and partnerships, the current and future valuation of the Company and its subsidiary, the economic effect of the Investment Agreement, the closing of the strategic investment and other transactions contemplated thereby, and the Company's expectations as to the partnership and future financings by investors and the achievement of certain environmental and permitting milestones, and other transactions contemplated thereby. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, but are not limited to risks related to operating in a foreign jurisdiction, including political and economic problems in Chile and Brazil; risks related to changes to mining laws and regulations and the termination or non-renewal of mining rights by governmental authorities; risks related to failure to comply with the law or obtain necessary permits and licenses or renew them; compliance with environmental regulations can be costly; actual production, capital and operating costs may be different than those anticipated; the Company may be not able to successfully complete the development, construction and start-up of mines and new development projects; risks related to mining operations; and dependence on the Penco Module and/or the Carina Module. Aclara cautions that the foregoing list of factors is not exhaustive. For a detailed discussion of the foregoing factors, among others, please refer to the risk factors discussed under "Risk Factors" in the Company's annual information form dated as of March 28, 2023, filed on the Company's SEDAR+ profile.Actual results and timing could differ materially from those projected herein. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this press release is provided as of the date of this press release and the Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
For further information, please contact:
Ramon Barua
Chief Executive Officer
investorrelations@aclara-re.com
SOURCE: Aclara Resources Inc.
View the original press release on accesswire.com
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Aclara Announces Appointment of Executive Vice President
Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) is pleased to announce the appointment of José Augusto Palma as Executive Vice President of the Company effective June 1, 2024
José Augusto will be a key member of the Company's leadership team and will be closely involved in all activities of strategic significance to the Company, including leading the development of relationships with public and private stakeholders and business partners, overseeing the permitting strategy, management of complex strategic issues and the development of corporate strategy and governance.
Ramon Barúa, CEO of Aclara, commented: "José Augusto is a fantastic addition to the Aclara team and will play a key role in the development of our two key projects in Chile and Brazil. He brings significant experience in the resources sector and has a proven track record of delivering results in the various positions he has held. Mr. Palma has previously led a team of professionals responsible for the approval of eight environmental and operational permits for mining projects in various countries, including in the State of Goiás in Brazil, and capital market transactions totaling approximately $3 billion. His appointment strengthens Aclara's senior management team in areas that are critical for the development of the Penco Module in Chile and the Carina Project in Brazil."
José Augusto is a senior mining executive with over 17 years of experience in the sector and currently Vice President, Legal & Corporate Affairs of Hochschild Mining PLC ("Hochschild"), a leading precious metals mining company listed on the London Stock Exchange with mining operations and projects in Argentina, Brazil, Chile and Peru. Mr. Palma joined Hochschild in 2006, and during his tenure has had direct responsibility over the legal, permitting, sustainability and institutional affairs matters of Hochschild, allowing him to develop a deep understanding of the region and its key stakeholders.
Prior to joining Hochschild, José Augusto had a successful 13-year legal career in the United States, where he was a partner at the D.C. law firm of Swidler Berlin, and subsequently worked at the World Bank. He also served in the Government of Peru for two years from 2002 to 2004.
José Augusto has been serving as a board member of Aclara since June of 2023 as a nominee of Hochschild but will step down as a director at Aclara's upcoming annual general meeting. He is a board member of the National Association of Mining, Petroleum and Electricity Industries in Peru (SNMPE) where he served as President of the Mining Sector between 2019 and 2020.
José Augusto holds degrees from the Universidad Iberoamericana in Mexico and Georgetown University Law Center (LLM).
About Aclara
Aclara Resources Inc. (TSX:ARA) is a development-stage company that focuses on heavy rare earth mineral resources hosted in Ion-Adsorption Clay deposits. The Company currently has two projects under development: the Penco Module in the Bio-Bio Region of Chile, and the Carina Project in the State of Goiás, Brazil.
Aclara's rare earth extraction process offers several environmentally attractive features. It does not involve blasting, crushing, or milling, and therefore does not generate tailings, thus eliminating the need for a tailings storage facility. The extraction process developed by Aclara minimizes water consumption through high levels of water recirculation made possible by the inclusion of a water treatment facility within its patented process design. The ionic clay feedstock is amenable to leaching with a common fertilizer, ammonium sulfate. Further, harmful levels of radionuclides, typical of hard rock rare earth deposits, are not concentrated within the Aclara flowsheet.
Simultaneously, alongside the development of the Carina and Penco projects, the Company intends to identify and evaluate further opportunities to increase future production of heavy rare earths. This will involve greenfield exploration programs and the development of additional projects within the Company's concessions in Brazil, Chile, and Peru.
Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including statements with regard to, among other things, the Company's expectations including statements with regard to, among other things, management's expectations as to the accretive value to the Company from the appointment of Mr. Palma as Executive Vice President. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the Company's annual information form dated as of March 22, 2024 filed on the Company's SEDAR+ profile. Actual results, timing, performance, achievements or future events or developments could differ materially from those expressed or implied herein. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this news release is provided as of the date of this news release and the Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
For further information, please contact:
Ramon Barua
Chief Executive Officer
investorrelations@aclara-re.com
SOURCE:Aclara Resources Inc.
View the original press release on accesswire.com
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Aclara Announces Rare Earths Processing in the U.S.A
Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) is pleased to announce that it has incorporated a U.S. based subsidiary, Aclara Technologies Inc. ("Aclara Technologies"), to develop its rare earths separation capabilities in the United States. This development will allow Aclara to better position itself to carry out all of the stages leading up to the production of metal and alloys for high performance permanent magnets, following the recent announcement that the Company has entered into a joint venture with CAP to develop metal and alloys capabilities. As a result, Aclara is positioned to become the first vertically integrated heavy rare earths company outside of Asia
Aclara CEO, Ramon Barua, commented:
"This strategic decision is only possible because of Aclara's unique feed of clean heavy rare earths, particularly Dysprosium and Terbium, which is expected to be sourced from two stable and investment friendly countries in the Americas. This competitive advantage distinguishes Aclara from other players in the industry. By going further in the vertical integration of rare earths production, we improve our ability to commercialize our product while retaining the economic margins of this important stage in the value chain. Consequently, end users will benefit from a more cost competitive product built with traceable, fully ESG compliant materials, resulting in a stable long-term supply of heavy rare earths. We understand the importance of building a geopolitically independent supply chain for critical materials and we aspire to become a leader in that effort."
Aclara's Vertical Integration Strategy
The decision to integrate vertically responds to the need for creating a geopolitically independent supply chain for permanent magnets, a much-needed performance enhancer for the motors of electric vehicles, wind turbines, robotics and other applications associated with the decarbonization of our planet.
Aclara Technologies is expected to source high purity mixed rare earths carbonates from Aclara's extraction modules in Chile and Brazil. These carbonates will be then converted into individual rare earths oxides in the separation facility. For this purpose, Aclara Technologies has awarded a contract to the Saskatchewan Research Council ("SRC") to develop a production flowsheet specially designed for its premium carbonate, and to Hatch Ltd. ("Hatch") to work on the engineering of the proposed separation facility. Under the terms of the agreement, SRC will develop a conceptual Solvent Extraction ("SX") separation process, which will serve as the basis for Hatch to conduct a Class 5-AACE CAPEX and OPEX estimation for the rare earth separation facility. The aim of this conceptual analysis is to design a plant capable of processing Aclara's mixed rare earth carbonates into separated neodymium and praseodymium (NdPr) oxide (with a purity of 99.0-99.9% by weight) and dysprosium (Dy) and terbium (Tb) oxides (with a purity of 99.5-99.99% by weight). The engineering study is expected to be completed by the end of the third quarter of 2024.
The Company notes that the final decision to build the separation facility will depend on the completion of a thorough analysis of costs, logistics and time to permitting. Alternative locations currently under consideration include Brazil and Chile.
Aclara COO, Barry Murphy, commented:
"This study represents the starting point of our strategic intent to vertically integrate our future mining operations into the production of separated rare earth oxides, and to position Aclara as a key player in the future supply of heavy rare earth oxides. Both SRC and Hatch possess the requisite expertise and experience to undertake this important work and we are therefore thrilled to be collaborating with these two highly reputable companies in the execution of the separation study."
The following senior engineers from SRC and Hatch will lead the separation engineering study:
- SRC: Baodong Zhao (PhD, P.Eng) has more than 25 years of experience in the metallurgical engineering and project management, especially in rare earth mineral processing and hydrometallurgy. He was previously an independent metallurgical consultant at REE Metallurgical Consulting and the Vice President of Metallurgy at Great Western Minerals Group Ltd. Over the past eight years, Baodong has worked on many rare earth projects by leading and participating in all aspects of laboratory and pilot plant test work, as well as preliminary economic assessments covering sample preparation, mineralogical characterization, beneficiation, hydrometallurgy and rare earth element separation using solvent extraction technology. Baodong is a reviewer for the Canadian Metallurgical Quarterly.
- HATCH: Rob Fraser has more than 30 years hydrometallurgical experience including operations, design, study management, commissioning, and technology commercialization. He obtained operations experience at Cawse Nickel (HPAL, SX, EW) and within Nyrstar at the Hobart and Cockle Creek Smelters. Major projects have included Voisey´s Bay nickel in Canada, where a hydrometallurgical demonstration plant (POX, SX, EW) was built before the commercial plant was taken to feasibility level and Goro Nickel Project, where he provided metallurgical support at the Yabulu refinery. Rob held roles, from Technical Manager and Deputy Project Manager on the commercial plant feasibility study, through to Lead Process, Module Construction Manager and Process Commissioning Lead on the demonstration plant. Rob is Hatch´s Global Hydrometallurgy Lead.
In parallel, Aclara will start to develop its metals and alloys capabilities through REE Alloys SpA, its recently established joint venture company with CAP S.A. (further details regarding the joint venture can be found in the Company's press release issued on March 13, 2024). Aclara's goal is to be able to connect all aspects of the production of clean rare earths up to the point where they are able to be received by a permanent magnet manufacturer. We expect that by approaching this effort under one company we will be able to capture synergies, reduce costs and expedite time to market.
Aclara's patented extraction of heavy rare earths is quite unique, considering its low carbon footprint, very high levels of water recirculation (>95%) and circular economy principles. It does not involve blasting, crushing, or milling, and it does not generate any solid or liquid residues, thus eliminating the need for a tailings storage facility. The ionic clay feedstock is amenable to leaching with a common fertilizer, ammonium sulfate. Further, harmful levels of radionuclides, typical of hard rock rare earth deposits, are not concentrated within the Aclara flowsheet. Finally, the Company aims to revegetate all impacted areas.
About Aclara
Aclara Resources Inc. (TSX:ARA) is a development-stage company that focuses on heavy rare earth mineral resources hosted in Ion-Adsorption Clay deposits. The Company currently has two projects under development: the Penco Module in the Bio-Bio Region of Chile, and the Carina Module in the State of Goiás, Brazil.
Aclara's rare earth extraction process offers several environmentally attractive features. It does not involve blasting, crushing, or milling, and therefore does not generate tailings, thus eliminating the need for a tailings storage facility. The extraction process developed by Aclara minimizes water consumption through high levels of water recirculation made possible by the inclusion of a water treatment facility within its patented process design. The ionic clay feedstock is amenable to leaching with a common fertilizer, ammonium sulfate. Further, harmful levels of radionuclides, typical of hard rock rare earth deposits, are not concentrated within the Aclara flowsheet.
Simultaneously, alongside the development of the Carina and Penco projects, the Company intends to identify and evaluate further opportunities to increase future production of heavy rare earths. This will involve greenfield exploration programs and the development of additional projects within the Company's concessions in Brazil, Chile, and Peru.
Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including statements with regard to the Company's corporate strategy; expectations as to activities conducted in connection with the Carina Module and Penco Module, timelines for completion and the success, effect or outcomes resulting therefrom; the development of a separation facility and the related contracts and studies in relation thereto; the development and success of the Company's vertical integration strategy; and plans as to expenditures, investments, and use of capital and financial resources in the near and long term. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the Company's annual information form dated as of March 22, 2024 filed on the Company's SEDAR profile. Actual results and timing could differ materially from those projected herein. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this news release is provided as of the date of this news release and the Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
For further information, please contact:
Ramon Barua
Chief Executive Officer
investorrelations@aclara-re.com
SOURCE:Aclara Resources Inc.
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Aclara Announces the Discovery of a New Heavy Rare Earths Deposit Hosted in Ion-Adsorption Clays in Brazil
Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) is pleased to provide an update on its exploration activities in Brazil by announcing its new Heavy Rare Earth Element ("HREE") ionic clays project, "Carina Module" (the "Project") located in the State of Goias, Brazil. The results of its initial auger drilling campaign[1], which was comprised of 1,693 meters of drilling within 236 drill holes, demonstrate the discovery of a new HREE deposit hosted in ionic clays. While the initial auger drilling campaign was shallow, with an average depth of 7.2 meters, it has unveiled a potential for expansion, both laterally and at depth, accompanied by the prospect of enhancing HREE grades
Highlights
- Size Potential: The mineralized area of the Carina Module spans approximately 1,400 hectares, with potential for lateral expansion. In contrast, the mineralized area of the Company's Penco Module in Chile covers approximately 140 hectares.
- Prospective Grades: The drilling results shows the potential for high Total Rare Earth Oxides[2] ("TREO") with average grades at 1,229 ppm. From an average drilling depth of 7.2 meters, 71.2% of the drillholes include 5.7 meters with TREO average grades at 1,367 ppm and Desorbable Rare Earth Oxides[3] ("DREO") at 449 ppm. A selection of high-grade drillhole results are shown in Table 1 below, with the full set of results included in Table 3 at the end of the document.
- Rich in HREE and LREE: The desorbable results demonstrate an outstanding distribution of HREE and Light Rare Earth Elements ("LREE"). In particular, 71.2% of drillholes reveal desorbable dysprosium ("Dy2O3 D") and terbium ("Tb4O7 D") grades at 18.1 ppm (≈4.1% of the rare earths basket distribution) and 3.1 ppm (≈0.7% within the rare earths basket distribution), respectively. In addition, desorbable neodymium oxide ("Nd2O3 D") and praseodymium oxide ("Pr2O3 D") grades show a summed value of 123 ppm (≈27.5% of the rare earths basket distribution).
- Metallurgical Compatibility: The metallurgy of the Penco Module, which utilizes an ammonium sulfate leaching solution, is well-suited for the Carina Module's ionic clays. 71.2% of drillholes show an average exchangeable fraction[4] for TREO of 36.6%, with the highest value recorded at 78%; total dysprosium oxide ("Dy2O3 T") exhibits an average exchangeable fraction of 46%, with the highest value at 78%, and Terbium oxide ("Tb4O7 D") exhibits an average exchangeable fraction of 52%, with a peak at 91%.
- Depth Potential: The average drill depth of the auger drilling campaign was 7.2 meters, which did not allow us to consistently reach the bottom limits of the lower Pedolith and Saprolite. However, over 70% of drillholes indicate a high anomalous exchangeable fraction in the last interval, suggesting that the deposit remains open at depth.
Table 1. Summary of Carina Module´s top 10 drillhole results (see location in Figure 2 below)
Ramon Barua, CEO, commented:
"The Carina Module's initial exploration results mark an important milestone in our journey to establish Aclara as a leading multi-country and multi-modular HREE company. The Carina Module is located in Goias, a state that promotes responsible mining endeavors and has a well-established track record and expertise in evaluating projects of this nature. The results validate our growth strategy and provide the Company with geopolitical diversification whilst we continue to advance the permitting on our Penco Module in Chile. Like the Penco Module, the Carina Module deposit shows potential to contain significant amounts of dysprosium and terbium, which are scarce and critical to establishing a western based, high performance magnet supply chain necessary for electric vehicles and wind turbines.
As we progress, the results are expected to validate the effectiveness of our in-house-developed exploration model in finding HREE-enriched ionic clay deposits. Although the initial auger drilling campaign was relatively shallow, the results are expected to support a solid maiden mineral resource. Our forward-looking plan includes conducting deeper drilling campaigns to fully assess the asset's potential. Concurrently, we will diligently work on estimating our maiden resource statement and conducting a Preliminary Economic Assessment to expedite engineering processes, with the ultimate goal of achieving production in the earliest possible timeframe."
Initial Auger Drilling Campaign Summary
A total of 1,731 meters of drilling within 238 auger drill holes was carried out from February to August 2023 as part of a scouting drilling campaign covering approximately 1,400 hectares within the area defined as the Carina Module (see Figures 2 and 3). The primary objectives of the drilling initiative were to:
- contribute to the definition of a maiden resource estimate of a size necessary to support a new production module;
- provide guidance for future reverse circulation drilling campaigns, needed to fully assess the asset's potential both laterally and at depth; and
- establish the metallurgical compatibility of the ionic clays found in the Carina Module with the metallurgical process developed for the Penco Module.
The drilling campaign used manually operated augers ideally suited for a scouting campaign requiring shallow drill depths and easy and quick access to drill sites and varying terrains. The images in Figure 1 below show an example of the auger drilling methodology performed at the Project.
Figure 1. Auger drilling campaign at Carina Module project
General Project Description
The Carina Module is located in the north-eastern part of the State of Goiás, in central Brazil. The site can be accessed via paved roads from Goiânia (the capital of the Goiás state) or Brasília (the national capital of Brazil). Both Goiânia and Brasília are major cities with modern infrastructure and services and offering commercial airports for domestic and international flights. From a district perspective, access to the site is via a 50km gravel road and the supply of electricity, water, and sanitation is provided by the Brazilian government utilities. At the site, domestic water is obtained from wells, and electrical supply can be obtained from an electrical substation located 90km from the Project.
The State of Goiás is also the home of the ion-adsorption clay project managed by Mineração Serra Verde, which has successfully obtained the required environmental and operating permits needed to construct and operate their mine and processing facility and which recently commenced commercial production. This demonstrates that the Goiás State has a positive track record in evaluating projects of this nature and could play an important role in the potential development of the Carina Module.
Figure 2 shows the Project area, covering approximately 1,400 hectares, which is characterized by a complete regolith profile (Pedolith and Saprolite horizons), as tested by the auger drilling campaign. The assay results showing the total Rare Earth Elements ("REE"), NdPr, Dy and Tb content and the exchangeable REE, NdPr, Dy and Tb fraction are displayed in Table 3. The table also displays the recoveries, corresponding drill hole depths, average composite grades (ppm), and shows the last interval of some boreholes, indicating that high REE grades remain open at depth. Figures 3 and 4 show examples of 4 drillholes with high desorbable dysprosium grades increasing at depth, the full extension of which will be tested in a future drilling campaign.
Figure 2. Carina Module map with executed auger drillholes, historic bore holes and the zone contour of the geological potential. Auger boreholes are displayed by blue dots. Some of the best drillholes, referenced in Table 1, show their regolith profile and the dysprosium exchangeable fraction curve (Dy D (ppm)) illustrated in Figure 3. The black diamond dots represent historical diamond drillholes completed by the previous owner within the Project area.
Figure 3. The Upper Pedolith, Lower Pedolith and Upper Saprolith regions and the locations of the cross sections A-A ´and B-B´ are shown in the map.
The distribution of the exchangeable REE fractions obtained from the auger drilling campaign are also plotted in the A-A´ and B-B´ cross-sections, indicating that the deposit is open to depth and laterally (some drill holes are pending analytical results). The drillholes shown in the A-A´ and B-B´ cross-sections have not intercepted the whole regolith profile. The exchangeable REE fractions show good values open to depth. A reverse circulation drilling campaign will be executed here to understand the full potential of the deposit at depth.
Figure 4. Drillholes ADPBR23011, ADPBR23094, ADPBR23103, and ADPBR23106, show Dy2O3 D (ppm; dysprosium exchangeable fraction curve) values open to depth. These drill holes have only intercepted part of the Lower Pedolith (yellow portion of the vertical bar represents the interval of the Upper Pedolith and the red portion of the vertical bar represents the interval of the Lower Pedolith).
Next Steps
The results from the initial auger campaign have provided the Company with a basis to further pursue the Project, which is expected to include the following activities:
- the issuance of a maiden mineral resource estimate during Q4 2023;
- the issuance of a NI 43-101 Preliminary Economic Assessment during Q1 2024;
- the execution of a 1,500-meters reverse circulation drill campaign to confirm the mineralized potential at depth. The campaign is expected to start at the end of October 2023 and is the initial phase of a reverse circulation campaign of 7,590 meters within 253 drillholes to convert the full potential of the deposit to an inferred mineral resource category; and
- the execution of a pilot test campaign during Q1 2024 in our fully owned pilot plant in Chile, utilizing a 25-ton sample of clay extracted from the Project area. This campaign will aim to demonstrate on a semi-industrial scale the feasibility of processing the ionic clays extracted from the Carina Module. Additionally, it will serve the purpose of producing commercial samples and further enhancing the value chain development efforts that were initiated with the Penco Module samples.
Geological Overview
The dominant lithologies of the Project are pink porphyritic monzogranite composed of quartz, oligoclase, microcline, and annite as essential minerals. Leucosienogranite is the secondary lithology, characterized by quartz, albite, and microcline. Using the historical and present auger drilling results, a thick regolith development has been interpreted ranging from 45 to 60 meters in thickness. This hypothesis will be tested with the execution of the upcoming reverse circulation drill campaign.
All the lithologies recognized in the Project have shown evidence of thick regolith profiles, secondary minerals such as the ionic clays, and the release of interesting REE fractions such Nd, Pr, Dy, and Tb. As part of the initial auger drilling campaign, the bottom limits of the lower Pedolith and Saprolite were not reached; however, the last intervals of the drill holes show exchangeable REE fractions open to depth.
Sampling and Assay Protocols
The 238 auger drill holes were sampled at intervals of 0.5 meters to 2 meters, for a total of 1,344 samples, which were sent for total REE analysis (REY T) to the ALS laboratory in Lima, Peru, and desorption (REY D) analysis to AGS laboratory in La Serena, Chile. The same sampling and analytical protocols were followed as indicated in the Company's Amended and Restated NI 43-101 Technical Report, Preliminary Economic Assessment for Penco Module Project, prepared by Ausenco Engineering Chile Limitada with an effective date of September 15, 2021. The QA/QC program indicates high levels of accuracy for Dy, Tb, Nd, Pr and Lu. Overall, the database for total grades similarly shows high accuracy. The Company contracted the services of GeoAnsata to review the data quality and QA/QC protocols.
Comparison: Carina Module vs. Penco Module
In an effort to facilitate the understanding of Carina Module results, Table 2 below has been prepared to compare the results obtained from the Carina Module drilling with those used for the Penco Module. The Penco Module information has been referenced from the Mineral Resource Update released on December 1, 2022.
Table 2. Comparison of Carina Module vs. Penco Module on selected parameters
Size: The mineralized footprint of the Carina Module covers approximately 1,400 hectares, which is an area 10 times larger than the Penco Module mineralized area.
Grades: TREO grades are lower than at the Penco Module, however, the focus needs to be set in the desorbable grades (DREO), which represent the recoverable fraction from TREO. Applying the same metallurgical process as employed by the Penco Module (ammonium sulphate leaching), the Carina Module's DREO grades are slightly lower than those found in the Penco Module mineralised area. It is important to note, however, that the Carina Module mineralization has only been tested to a depth of approximately 5.7 meters whereas the Penco Module has an average depth of approximately 24 meters. This has prompted the decision to initiate a deeper drilling campaign to determine the full potential of the Carina Module mineralisation with regards to both size and grades. As demonstrated in Figures 3 and 4, the mineralised area remains open at depth.
Metallurgy: The metallurgical process used to determine the DREO grades at the Carina Module is the same as that used on the Penco Module, which has previously been successfully validated through a semi-industrial scale pilot plant operation. This metallurgical methodology represents a proven concept with positive environmental attributes and cost-effectiveness. The Company remains optimistic that further enhancements can be made to the metallurgical process which will improve recoveries and, to this end, plans to conduct a research and development programme to optimize the metallurgical formula for the Carina Module clays.
REE content: The Carina Module shows attractive REE contents, with a NdPr to DyTb ratio of approximately 5.8. This positions the asset as a potential net contributor of heavy rare earths essential for manufacturing high-performance permanent magnets, especially those needed for electric vehicles ("EVs"). For further insights, please refer to the Rare Earth Market section below.
Barry Murphy, COO, commented:
"We're excited about the results from the initial round of drilling at the Carina Module. The deposit identified through this initial drilling looks promising in terms of its size, the amount of contained dysprosium and terbium, and how compatible the clays are to the application of our demonstrated metallurgical flowsheet. While it's still early days for the Carina Module, the Company has a detailed exploration and metallurgical development plan over the following nine months aimed at confirming its full potential."
Concessions and Land Ownership
On February 27, 2023, the Company entered into an earn-in agreement with a Brazilian mining company that provides the Company the right to acquire up to 100% of the 8,490 hectares of mining concessions over the target area of the Project.
Qualified Person
The technical information in this news release, including the information related to geology, drilling, and mineralization, has been reviewed and approved by Luiz Jorge Frutuoso Junior, current Aclara Exploration Manager, with more than 20 years of relevant experience. Mr. Frutuoso is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and Fellow of Australian Institute of Geoscientists (AIG) and is a Qualified Person (QP) as defined by National Instrument 43-101 -Standards of Disclosure for Mineral Projects.
Mr. Frutuoso confirms that he visited the project area on May 24, 2023 and was supported by the Chief of Geology at Aclara, Juan Pablo Navarro, who reviewed and analyzed the relevant project information. Carlos Santos, Database and QA/QC Geologist of the Company provided an analysis of the QA/QC work over the Carina Module.
Rare Earths Market
The global transition to clean energy has helped to drive an expanding market for REE due to their valuable properties. Dysprosium and terbium, which are HREE, and neodymium and praseodymium, which are LREE, have magnetic attributes and are critical components in the production of high-performance permanent magnets. Neodymium-based permanent magnets ("Nd magnets") offer superior performance as they are lighter and stronger compared to other type of magnets and have the ability to be engineered into any shape or size. The predominant uses of Nd magnets are in the EV industry and in wind turbines. In EVs, permanent magnets result in increased range autonomy, better use of space, lower weight and lower battery costs, the latter as a result of reduced lithium, cobalt and nickel content. Neodymium permanent magnet motors offer the best performance and optimization potential in electric motors, with approximately 90% of EV models using them as part of their drivetrain.
Incorporation of dysprosium and terbium into neodymium magnets delivers enhanced operating performance by enabling them to operate at higher temperatures (magnets with HREE can operate up to 240 °C as compared to approximately 80 °C for magnets without HREE), without losing their magnetic properties (high coercivity). An average Nd magnet contains approximately 30% NdPr, 3% DyTb, 1% Boron ("B") and 66% Iron ("Fe"). The desired ratio between NdPr and DyTb is 10:1, however most deposits in the world offer ratios that are over 100:1.
Supply of HREE is currently dominated by China, which in 2022, was estimated by the U.S. Geological Survey to contribute 70% of global TREO production. Furthermore, it is estimated that China imported 100% of REO produced from Myanmar's ionic clay production facilities, increasing their supply control of dysprosium and terbium to approximately 90%. The remaining 30% of global TREO production comes primarily from two operations, one of which is located in the United States and the other one in Australia, which mainly produce LREE. In May 2023, the U.S. Department of Energy evidenced this by established dysprosium as the most important element for the energy transition, and suggested securing its sourcing is at its highest risk.
Figure 5. US Department of Energy, Critical Materials Assessment (May 2023)
About Aclara
Aclara Resources Inc. (TSX: ARA) is a development-stage company that focuses on heavy rare earth mineral resources hosted in Ion-Adsorption Clay deposits. Its primary project is known as the Penco Module and is located in the BioBio Region of southern Chile. The Company is also evaluating a second module, the Carina Module, located in the State of Goiás in central Brazil.
Presently, Aclara has a strong focus on the development, construction, and future operation of the Penco Module, with the primary objective of establishing a processing plant designed to produce heavy rare earths concentrate.
Aclara's extraction process offers several environmentally attractive features. It does not involve blasting, crushing, or milling. Additionally, it does not generate tailings, eliminating the need for a tailings storage facility. The Company utilizes 100% recycled water and minimizes water consumption through high levels of water recirculation. The ionic clay feedstock is amenable to leaching with a fertilizer, and harmful radionuclides are not produced.
Simultaneously, alongside the development of the Penco Module, the Company intends to identify and evaluate further opportunities, such as the Carina Module, for increasing production of heavy rare earth elements. This will involve intensive greenfield exploration programs and the development of additional project "modules" within the Company's concessions in Brazil, Chile and Peru.
Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including statements with regard to: mineral continuity, grade, and upside at the Penco Module and Carina Module, the Company's exploration plan and activities in Brazil and the expectations of the Company's management as to the results of such exploration works and drilling activities; timing, cost and scope in respect of the exploration activities in Brazil, the issuance of a Mineral Resource Estimate and Preliminary Economic Assessment relating to the Carina Module, , and the contemplated development of greenfield targets and expected reduction in permitting risk. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, but are not limited to risks related to operating in a foreign jurisdiction, including political and economic problems in Chile and Brazil; risks related to changes to mining laws and regulations and the termination or non-renewal of mining rights by governmental authorities; risks related to failure to comply with the law or obtain necessary permits and licenses or renew them; compliance with environmental regulations can be costly; actual production, capital and operating costs may be different than those anticipated; the Company may be not able to successfully complete the development, construction and start-up of mines and new development projects; risks related to mining operations; and dependence on the Penco Module and/or the Carina Module. Aclara cautions that the foregoing list of factors is not exhaustive. For a detailed discussion of the foregoing factors, among others, please refer to the risk factors discussed under "Risk Factors" in the Company's annual information form dated as of March 28, 2023 filed on the Company's SEDAR+ profile.Actual results and timing could differ materially from those projected herein. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this news release is provided as of the date of this news release and the Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
For further information, please contact:
Bonzi Yokomizo Baptista
Brazil General Manager
investorrelations@aclara-re.com
Aclara Resources has engaged Reflex Media to provide marketing services in connection with a digital marketing campaign aimed at increasing the knowledge and awareness of the Company to new audiences.
Table 3. Complete list of drillholes from the auger drilling campaign at Carina Module (February - August 2023)
[1] Auger Drilling Campaign; Results consider Total Rare Earths Oxides ("TREO") of 100% of the auger drillholes of the drilling campaign and 81.8% of desorbable results, with the remaining18.2% pending the final assay results.
[2] TREO: Considers all rare earths elements represented in oxide form (Lanthanum - La2O3, Cerium - Ce2O3, Praseodymium - Pr6O11, Neodymium - Nd2O3, Samarium - Sm2O3, Europium - Eu2O3, Gadolinium - Gd2O3, Terbium - Tb4O7, Dysprosium - Dy2O3, Holmium - Ho2O3, Erbium - Er2O3, Thulium - Tm2O3, Ytterbium - Yb2O3, Lutetium - Lu2O3).
[3] DREO: Desorbable Rare Earth Oxide is the recoverable fraction of the total contained rare earths ( TREO) using the Penco Module´s ammonium sulfate based metallurgical process.
[4] Exchangeable fraction: The exchangeable fraction refers to the percentage (%) of recoverable grade from TREO using the Penco Module´s ammonium sulfate based metallurgical process.
SOURCE:Aclara Resources Inc.
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Aclara Provides Update on Permitting and Development Strategy for the Penco Module Project in Chile
Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) provides an update on its Chilean Penco Module (the "Project") permitting and development strategy following the previously announced receipt of notice from the Environmental Service Assessment ("SEA") of its decision to terminate the review of the Company´s application for an environmental impact assessment ("EIA") of the Project based on the identification of six previously undisclosed "naranjillo" trees, considered "vulnerable species", within the Project area. Five of these naranjillo trees were found near an existing access road that would require modification and one naranjillo tree was found in a local "native forest" within the deposition zone known as Jupiter
EIA Application
Aclara has revised its permitting strategy with the primary aim of addressing concerns associated with native forests whilst expecting to minimize any substantial impact on the Project's development timeline. The revised strategy will also afford the Company with the opportunity to integrate technical enhancements into the Project. To effectively implement the revised strategy, the Company is proposing to undertake the preparation and submission of two EIAs, which will collectively cover the full life of mine of the Project. Chilean regulations allow for the submission of a project to SEA in two or more stages provided that they are at the same regulatory review level, as would be the case in respect of the two EIAs.
The Company is currently preparing an initial EIA ("EIA 1"), which will cover approximately the first five years of life of mine of the Project and will encompass three extraction zones (Victoria Norte, Luna and Maite), one deposition zone (Neptuno) and the production facilities of the Project. The production of these three zones will be operationally balanced with the deposition zone and EIA 1 is expected to cover the payback period of the initial capex of the Project. EIA 1 aims to largely reduce the Project´s exposure to native forests as well as address the observations received from the evaluation services. The Company expects to file EIA 1 during Q1 2024.
The second EIA ("EIA 2") will be prepared when the Company is ready to expand its production at the Project to zones not covered by EIA 1 (namely, Victoria Sur, Alexandra Oriente, and Alexandra Poniente) based on the availability of new deposition zones. The Company will present a permit application to reactivate the Jupiter deposition zone as well as evaluate new deposition zones. Furthermore, EIA 2 will consider an increase to the production plant's throughput capacity. Such an increase will be studied at a conceptual level during 2024.
Technical Development
In light of the revised permitting strategy, the Company has decided to delay the completion of its Feasibility Study and use the additional time to further refine the engineering aspects of the Project by incorporating enhancements that are expected to result in reduced capital and operating costs and improved operational efficiency. These enhancements are the direct result of insights gained from recent piloting work and ongoing research and development initiatives.
Aclara's CEO, Ramon Barua, commented: "Our revised strategy for the Project reflects our commitment to address the concerns raised by the Chilean environmental evaluation services, even if it would result in a staged approach to the development of the Project. Given the limitations imposed by the naranjillo tree found in the Jupiter deposition zone, the Company will explore alternatives in order to find the best solution for deposition zones. We are optimistic about the potential of achieving success in terms of one or more of such alternatives in order to minimize the environmental impact while maximizing the value of the Project."
Updated Project Schedule
As a result of its updated permitting and development strategy, the Company has also updated the proposed milestones and/or targets relating to the Project, which are as presented below:
- EIA 1 Filing: Q1 2024
- Anticipated EIA 1 Approval: Q4 2025
- Feasibility Study Filing: Q3 2025
- Construction: Q1 2026
- Production: Q2 2027
About Aclara
Aclara Resources Inc. (TSX: ARA) is a development-stage company that focuses on heavy rare earth mineral resources. Its primary project is located in the Biobio Region of southern Chile. The company is dedicated to developing its mineral resources through a project known as the Penco Module. This module encompasses an area of approximately 600 hectares and contains ionic clays that are rich in heavy rare earth elements.
Currently, Aclara Resources is primarily focused on the development, construction, and future operation of the Penco Module. The goal is to establish a processing plant that will produce a heavy rare earth concentrate. This concentrate will be generated by processing clays obtained from nearby deposits.
Aclara's extraction process offers several environmentally attractive features. It does not involve blasting, crushing, or milling. Additionally, it does not generate tailings, eliminating the need for a tailings storage facility. The company utilizes 100% recycled water and minimizes water consumption through high levels of water recirculation. The ionic clay feedstock is amenable to leaching with a fertilizer, and harmful radionuclides are not produced.
Simultaneously, alongside the development of the Penco Module, the company intends to identify further opportunities for increasing rare earth element production. This will involve intensive greenfield exploration programs and the development of additional project "modules" within the company's concessions.
Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including statements with regard to the permitting process, the revised EIA application, including the timing and preparation of EIA1 and EIA2, on-going and future discussions and consultations with relevant authorities and advisors, the completion of, and impact of the delay of, a Feasibility Study on the Penco Module, plans and strategies, and key milestones and targets relating to the development and construction of, or production at, the Penco Module. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, but are not limited to risks related to operating in a foreign jurisdiction, including political and economic problems in Chile; risks related to changes to mining laws and regulations and the termination or non-renewal of mining rights by governmental authorities; risks related to failure to comply with the law or obtain necessary permits and licences or renew them; compliance with environmental regulations can be costly; actual production, capital and operating costs may be different than those anticipated; the Company may be not able to successfully complete the development, construction and start-up of mines and new development projects; risks related to mining operations; and dependence on the Penco Module. Aclara cautions that the foregoing list of factors is not exhaustive. For a detailed discussion of the foregoing factors, among others, please refer to the risk factors discussed under "Risk Factors"in the Company's annual information form dated as of March 28, 2023 filed on the Company's SEDAR profile. Actual results and timing could differ materially from those projected herein.Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this news release is provided as of the date of this news release and the Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
For further information, please contact:
Ramon Barua
Chief Executive Officer
investorrelations@aclara-re.com
SOURCE:Aclara Resources Inc.
View source version on accesswire.com:
https://www.accesswire.com/787067/aclara-provides-update-on-permitting-and-development-strategy-for-the-penco-module-project-in-chile
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Ionicre Raises $5.5 Million in a Placement
The Board of Ionic Rare Earths Limited (ASX: IXR) (“IonicRE” or “the Company”) announces it has received firm commitments to raise $5.5 million (before costs) by way of a share placement of approximately 423 million shares at $0.013 per share (“Placement”). The Placement was strongly supported by both key existing shareholders.
- IonicRE has received firm commitments to raise $5.5 million (before costs) in a Placement;
- Placement includes participation of $0.5 million from IonicRE Executive Chairman Mr Brett Lynch, further to his recent $1.5 million investment on joining the Company in January 2024;
- Funds raised will support:
- Advancing Ionic Technologies’ magnet recycling technology and enhancements to its Magnet Recycling Demonstration Plant, currently producing separated magnet rare earth oxides (REOs) in Belfast, UK, along with the completion of a Feasibility Study for a full-scale plant, expected mid 2024; and
- Advancing offtake and financing discussions presently underway at the Makuutu Ionic Adsorption Rare Earths Project, where the demonstration plant at site is producing mixed rare earth carbonate (MREC) which will be evaluated by several parties to advance offtake negotiations.
Managing Director Tim Harrison commented,“We have received such a significant amount of interest from various magnet manufacturers, alloy makers and OEM’s who are interested in utilising our world-class magnet rare-earth recycling technology for access to secure, sustainable, and traceable rare earth supply. Demand at our operational demonstration plant in Belfast is now full for the next 18 months with potential partner trials advancing to plan.”
“Further, our upstream project, the Makuutu Rare Earth Project, is also advancing well with several offtake negotiations with partners who will be evaluating our MREC being produced at the Makuutu demonstration plant. We are on the verge of a tangible increase in shareholder value. We greatly appreciate the support of existing shareholders with funding this placement.”
Placement Details
The Company has received binding commitments from existing sophisticated investors to raise $5.5 million (before costs) through the issue of 423,076,923 fully paid ordinary shares (“Shares”) at an issue price of $0.013 per Share (“Placement”). Participants will receive 3 free attaching unlisted options for every 4 shares issued with an exercise price of $0.02 (being a 54% premium to the issue price of Shares under the Placement) and a 4-year term which will see 317,307,690 unlisted options (“Options”). 216,967,454 free attaching unlisted Options will be issued utilising the Company’s existing placement capacity pursuant to Listing Rule 7.1, with the balance to be issued subject to shareholder approval.
The issue price under the Placement represents a 25.3% discount to the volume weighted average price ("VWAP") of IonicRE shares over the past 10 trading days. Shares issued under the Placement will be issued utilising the Company’s existing placement capacity pursuant to Listing Rule 7.1 and are expected to be issued on or about Wednesday, 1 May 2024. The Shares issued under the Placement will rank equally with IonicRE’s existing Shares quoted on the ASX.
Mr. Brett Lynch, IonicRE’s Executive Chairman, will subscribe for 38,461,539 Shares ($500,000) under the Placement plus 28,846,154 free attaching Options with an exercise price of $0.02 and a 4-year term, subject to receiving approval at a general meeting of shareholders to be held this quarter. This is in addition to Mr Lynch’s $1.5 million equity investment in January 2024 when he joined the Board of the Company.
Canaccord Genuity (Australia) Limited and MST Financial Services Pty Limited acted as Joint Lead Managers to the Placement, with Canaccord acting exclusively as Global Coordinator and Sole Bookrunner (Global Coordinator) to the offer.
Use of Funds
It is the intention of the Company to use the funds raised under the Placement to advance the commercial partnership negotiations, magnet recycling demonstration plant enhancements and the completion of the feasibility study at Ionic Technologies, plus activity at the Makuutu demonstration plant tied to offtake negotiations and working capital.
The Joint Lead Managers will be entitled to receive a fee equal to 6% of the Placement proceeds, excluding the amount subscribed by Mr. Brett Lynch. Subject to shareholder approval, the Company proposes to issue 20 million unlisted options to the Joint Lead Managers with an exercise price of $0.02 and expiring 4 years after the date the options are issued.
All amounts are in Australian dollars unless otherwise specified.
Nothing contained in this announcement constitutes investment, legal, tax or other advice. Investors should seek appropriate professional advice before making any investment decision.
Click here for the full ASX Release
This article includes content from Ionic Rare Earths, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
ChemX Materials: Developing Innovative Processing Technology to Produce High Purity Alumina
ChemX Materials (ASX:CMX) develops innovative processing technology to produce high purity alumina for advanced technology and clean energy applications. The company's 100 percent owned, Australian patented HiPurA® process technology offers a low cost and energy intensity production method to produce high purity alumina (HPA).
HPA is used in advanced technology and clean energy applications including lithium-ion batteries, LEDs, semiconductors and synthetic sapphires. Synthetic sapphires are critical in the production of applications such as smart watches, iPhones and laptop screens.ChemX Materials is also developing a high purity manganese project. The Jamieson Tank project is located on two exploration tenements, EL 5920 and EL 6634 in the Eyre Peninsula in South Australia. These tenements collectively cover an area of 718 km2.
ChemX Materials completed a 94-hole drill program at the Jamieson Tank project, totaling 6,164 metres and released its maiden Mineral Resource Estimate in September 2023. The Mineral Resource Estimate reported 13.1 Mt at 5.7 percent manganese, with 21 percent classified as Indicated and 79 percent classified as Inferred.
Company Highlights
- ChemX Materials Limited (ChemX Materials) is an Australian company developing an innovative, processing technology to produce high-purity alumina (HPA), this process is called HiPurA®.
- ChemX Materials owns 100 percent of HiPurA® and was granted an Australian patent for this technology in January 2024.
- High purity alumina is used in advanced technology and clean energy applications including lithium-ion batteries, LEDs, semiconductors, smart watches and iPhones.
- The HiPurA® process is modular, scalable and uses a readily available aluminous chemical as its feedstock, therefore is not reliant on mine production offtake, all of which enable the technology to be deployed close to end users' manufacturing operations.
- ChemX Materials has proven HiPurA® can produce above 4N (99.99 percent) high purity alumina at micro plant scale. This testwork indicates HiPurA® is low in cost and energy intensity.
- ChemX Materials is constructing a pilot plant to demonstrate HiPurA® can work at scale, which is the next step towards commercialisation. The pilot plant construction is underway and on track for commissioning in June 2024.
This ChemX Materials profile is part of a paid investor education campaign.*
Click here to connect with ChemX Materials (ASX:CMX) to receive an Investor Presentation
Massive Maiden Mineral Resource Estimate >1B Tonnes for EMA Rare Earth Project
Brazilian Critical Minerals Limited (ASX: BCM) (“BCM” or the “Company”) is pleased to announce a maiden Mineral Resource Estimate (MRE) for the Ema and Ema East projects (collectively Ema), forming part of the Company´s wholly owned REE projects, Apuí, Amazon, Brazil (Table 2) at a cut-off of 500ppm the Inferred Mineral Resource Estimate contains 1,017Mt @ 793 ppm TREO.
Highlights
- JORC 2012 compliant Inferred Mineral Resource Estimate (MRE) of 1.02Bt @ 793ppm TREO, including a higher-grade portion of 331Mt @ 977ppm TREO
- Places Ema as one of the largest1 tonnage fully ionic clay, rare earth deposits in the world
- High magnetic REO (Nd, Pr, Dy, Tb) element proportion of 27 – 31% of basket positioning it as one of Brazil’s most enriched MREO deposits
- MRE developed from only 46% of the available area at Ema, with 107km2 available for further exploration
- The mineralisation is close to surface, amenable to low-cost open pit mining methods and remains open at depth and to the east and west
- Drilling program is now being designed to convert MRE from Inferred to Indicated and Measured categories
MRE when coupled with previously announced1 world class metallurgical testwork recovery results of the magnetic rare earth oxides (MREO), as listed below, confirm the following:
- 10 metres @ 76% Nd, 74% Pr, 47% Dy and 54% Tb from 10m (EMA-TR-101)
- 6 metres @ 66% Nd, 61% Pr, 56% Dy and 83% Tb from 10m (EML-TR-059)
- 13 metres @ 71% Nd, 62% Pr, 45% Dy and 52% Tb from 5m (TR-071)
- 5 metres @ 66% Nd, 66% Pr, 52% Dy and 55% Tb from 12m (TR-059)
- 10 metres @ 65% Nd, 61% Pr, 43% Dy and 50% Tb from 10m (TR-110)
- Ema is a fully ionic clay rare earth deposit – there is currently zero drilling into fresh rock
- Is amenable to a low cost REE metal recovery process – low reagent usage, high impurity removal in final product
- Recoveries achieved using standard weak ammonium sulphate leaching solution, pH 4, at ambient temperatures over low leach times of only 30 minutes duration
- Results demonstrate mineralisation is suited to low-cost processing through conventional processing facilities commonly used in China
Andrew Reid, Managing Director, commented:
“Today’s announcement is very important for the Company and our shareholders as it now sets us on a path towards development. This result places Ema as one of the largest ionic rare earths deposits in the world. The team has done a tremendous job in getting such a large MRE defined in less than 1 year, which now confirms the immense potential of the Ema project in Brazil.
Not only do we have a massive mineral resource of >1 billion tonnes but also significantly we have >300 million tonnes at grades close to 1,000ppm which will assist in generating positive financial cash flow models.
Opportunities to increase both grade and tonnage remain high due to the extremely conservative global specific gravity (SG) of 1.34 which was applied to the estimated volumes. Additional deeper, less weathered samples from the higher-grade horizon is expected to result in significantly higher sg’s.
With only 46% of the total area drilled, the team is confident of increasing not only tonnages but believes the opportunities to also increase the grade are well founded and will be tested through the next round of drilling commencing over the coming months. BCM is now well on its way to establishing the Company as a global rare earths leader.”
Click here for the full ASX Release
This article includes content from Brazilian Critical Minerals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
ChemX Materials
Overview
ChemX Materials (ASX:CMX) is a critical materials company developing innovative processing technology to produce high purity alumina for advanced technology and clean energy applications.
ChemX Materials’ 100 percent owned, Australian patented HiPurA® process technology offers a low cost and energy intensity production method to produce high purity alumina (HPA).
HPA is used in advanced technology and clean energy applications including lithium-ion batteries, LEDs, semiconductors and synthetic sapphires. Synthetic sapphires are critical in the production of applications such as smart watches, iPhones and laptop screens.Company Highlights
- ChemX Materials Limited (ChemX Materials) is an Australian company developing an innovative, processing technology to produce high-purity alumina (HPA), this process is called HiPurA®.
- ChemX Materials owns 100 percent of HiPurA® and was granted an Australian patent for this technology in January 2024.
- High purity alumina is used in advanced technology and clean energy applications including lithium-ion batteries, LEDs, semiconductors, smart watches and iPhones.
- The HiPurA® process is modular, scalable and uses a readily available aluminous chemical as its feedstock, therefore is not reliant on mine production offtake, all of which enable the technology to be deployed close to end users' manufacturing operations.
- ChemX Materials has proven HiPurA® can produce above 4N (99.99 percent) high purity alumina at micro plant scale. This testwork indicates HiPurA® is low in cost and energy intensity.
- ChemX Materials is constructing a pilot plant to demonstrate HiPurA® can work at scale, which is the next step towards commercialisation. The pilot plant construction is underway and on track for commissioning in June 2024.
Key Business Segments
High Purity Alumina Processing Technology - HiPurA®
ChemX Materials is developing an innovative processing technology to produce high-purity alumina (HPA). This process is called HiPurA®. ChemX Materials owns 100 percent and holds an Australian patent for HiPurA®. ChemX Materials has proven HiPurA® can produce above 4N (99.99 percent) pure HPA at micro plant scale. This test work has also demonstrated that HiPurA® is superior compared to alternative technologies, offering several advantages, including:
- Lower costs – both capital and operating.
- Independent feedstock - – process is not tied to mine production and uses a readily available aluminous industrial chemical.
- Easily scalable – production output can increase based on demand.
- Modular – can be built near end users’ manufacturing operations.
- Optionality – patented technology can be licenced to end users.
- Lower carbon footprint – technology is not energy intensive.
HPA has several applications, the most important being lithium-ion batteries used in electric vehicles (EVs) and energy storage applications. HPA is used in the coating of the battery separator to enhance safety and performance. The outlook for EVs is very promising. With the adoption of EVs growing rapidly year on year as governments across the globe deploy domestic incentives and regulations to reduce the use of internal combustion engines to meet net zero targets.
HPA is also a key in the production of synthetic sapphire, which is used in LEDs, semiconductors, lasers, optical lenses and medical devices.
ChemX Materials has proven its HiPurA® technology can achieve above 99.99 percent (4N) HPA purity at micro plant scale. Following the technical success of the micro plant, ChemX Materials is constructing a 24 tpa pilot plant in Western Australia. The pilot plant is expected to be operational in June 2024.
In January 2024, ChemX Materials was granted an Australian Patent for its innovative HiPurA® technology. Based on the success of the Australian patent, it is anticipated that ChemX Materials will be afforded similar protections in other international jurisdictions. The patent is important as it provides intellectual property protection as ChemX Materials seeks to commercialise the technology globally.
HPA production from the pilot plant will be used for customer qualification and marketing purposes. ChemX Materials is actively pursuing commercial opportunities globally. Commercialisation options include:
- Build, own, operate a commercial scale plant to sell high purity alumina to end users.
- Licence the HiPurA® technology for deployment at end users’ manufacturing locations.
High Purity Manganese Project
ChemX Materials is developing a high purity manganese project. The Jamieson Tank project is located on two exploration tenements, EL 5920 and EL 6634 in the Eyre Peninsula in South Australia. These tenements collectively cover an area of 718 km2.
ChemX Materials completed a 94-hole drill program at the Jamieson Tank project, totaling 6,164 metres and released its maiden Mineral Resource Estimate in September 2023. The Mineral Resource Estimate reported 13.1 Mt at 5.7 percent manganese, with 21 percent classified as Indicated and 79 percent classified as Inferred.
High purity manganese has essential applications in lithium-ion batteries as a cathode material. Manganese provides energy density, stability and lower costs and is a critical material for modern battery chemistries. As the world pursues decarbonisation it is forecasted that the demand for manganese will grow.
With the objective of the United States Inflation Reduction Act (IRA) to reduce its reliance on Chinese sources of critical minerals, by 2025, the Jamieson Tank project is an important prospect. China currently supplies around 95 percent of the global manganese sulphate.
The South Australian jurisdiction offers excellent infrastructure. The Jamieson Tank project is in a province that is characterised by rapidly growing renewable energy infrastructure (wind, solar and hydrogen) and access to a local skilled workforce. The Jamieson Tank project is accessible by road, approximately 160 kms from the port of Whyalla and near a major regional airport.
The tenements in which the Jamieson Tank project is located also host kaolin and rare earth elements (REE) deposits. The area has historically been well known and explored for its potential for kaolin. The Kelly Tank exploration target is estimated to be 55 - 130 Mt of extractable kaolin.
In 2022, ChemX Materials undertook a drilling program and identified REE hosted within the kaolin throughout the tenements. The drilling program intersected high-grade REE mineralisation with intervals of up to 5 metres @2,468 parts per million total rare earth oxides from 7 metres. Importantly, it remains open in various directions, providing potential exploration upside for future drill programs.
Management Team
Peter Lee – Chief Executive Officer
20+ years’ experience across mining, metals processing and chemical industries within Canada and Australia. Lee has held technical leadership roles with companies including Rio Tinto, BHP, Roy Hill and WSPGolder. He is an expert in refining and electrochemical processes and a registered P. Eng Engineers and Geoscientists of British Columbia, Canada, and a member of AusIMM and AICD.
Warrick Hazeldine – Non-executive Chair
Warrick Haseldine has more than 20 years of experience across capital markets and strategic communications with a focus on battery materials. He is the co-founder of advisory firm Cannings Purple, and former chair and non-executive director of Global Lithium Resources Ltd (ASX:GL1). Hazeldine is currently a director of Surfing WA, advisory board member of Curtin University, and a non-executive director of Purple.
Stephen Strubel – Executive Director and Company Secretary
Stephen Strubel is the company founder with 20 years’ experience in finance and corporate governance. Struber held a senior leadership role with Patersons Securities and has been a director and company secretary for ASX-listed companies. He holds a bachelor’s degree in banking and international trade from Victoria University and an MBA from the Australian Institute of Business.
Alwyn Vorster – Non-executive Director
Alwyn Vorster has 30+ years’ experience in the resources industry, spanning several commodities including rare earths, iron ore, bauxite, potash and salt. Vorster has several senior leadership positions including chief executive officer of Hastings (ASX:HAS) and managing director of BCI Minerals (ASX:BCI) and Iron Ore Holdings (ASX:IOH). Vorster is currently non-executive director of Lindian Resources (ASX:LIN) and Arrow Minerals (ASX:AMD).
Rock Chips of up to 3.22% TREO Identified in Newly Granted Machinga Licence
Heavy rare earths (HREE) and Niobium (Nb) explorer DY6 Metals Ltd (ASX: DY6) (“DY6”, “the Company”) is pleased to announce the receipt of the assay results for the second comprehensive reconnaissance rock chip and soil sampling program completed at Machinga Main Licence Area Anomaly (Figure 1).
HIGHLIGHTS
- Sampling program consisting of a total of 727 rock chips and soil samples recently completed into recently granted licence area at Machinga
- Full assay results received from soil and rock chip sampling program at Machinga:
- 305 soil samples were taken on a 200m x 100m grid
- Assays returned up to 0.49%TREO
- 21% of all soil samples returned >1000ppm (>0.1%) TREO
- 422 rock chip samples were taken on a nominal 50 x 50m grid
- Assays returned up to 3.22% TREO, with 5 samples returning 1%+ TREO
- Rock chips also returned up to 0.75% Nb2O5
- 305 soil samples were taken on a 200m x 100m grid
- Two anomalies west of the main road of the newly granted licence show a much more continuous character of higher TREO results - highlighting the scale potential of REE mineralisation in this new area of the licence
- Assays will assist in refining targets ahead of next phase of drilling at Machinga
Machinga Soil and Rock Chip Sampling Program
Following on from the DDH assays reported in December 2023, DY6 conducted a comprehensive geochemical sampling over the Machinga exploration licences (EL0705/EL0529) initially, targeting the western side of the maiden drilling in Area 1 and 2 in licence EL0529 before moving to the anomalous soil responses in the southern region of Machinga main (EL0705) (Figure 1). The program consisted of a total of 727 samples which included 422 rock chips and 305 soils. The full list of assay results is included in Table 1.
Geochemical sampling was extended into the new licence and over the anomalous southern region covering and area of approximately 3000m x 2000m along a NW-SE strike direction. A previously reported extensive uranium radiometric anomaly, which spans over 7km along the same geological unit (refer ASX release dated 6 July 2023) is being targeted by the Company.
Click here for the full ASX Release
This article includes content from DY6 Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Rare Earth Elements Prices 101 (Updated 2024)
From electric vehicles and wind turbines to water treatment and nuclear power, rare earth elements (REE) are critical for many of the technologies necessary for a cleaner, greener economy and world. However, understanding pricing for these commodities can be tricky.
There are 17 rare earth minerals in all, and each is classified under different groups — typically light rare earths and heavy rare earths. Prices are available for multiple individual and mixed products, including for the rare earths used in permanent rare earth magnets, so it can all seem a bit overwhelming.
“The supply chain for rare earth materials and permanent magnets is complex, regionally concentrated and marked by a lack of transparent pricing,” according to international price reporting agency Fastmarkets. “This can lead to unpredictable costs, budgeting difficulties and supply insecurity. Geopolitical tensions further add to this uncertainty.”
Read on for a short introduction to the rare earth elements market and prices.
What is China's role in rare earths pricing?
First and foremost, it’s important to know that China is the main driver when it comes to REE prices and the rare earths market as a whole. The country is the world’s leading rare earths producer by a wide margin, and despite efforts elsewhere also controls about 87 percent of global rare earths refining capacity.
China has such a monopoly on the sector that REE prices spiked in 2010 and 2011 when the country cut exports. That sparked a boom for rare earths companies and mining projects around the world, as they sought to create reliable sources of rare earths supply outside of China. However, many failed to thrive when REE prices fell again.
In 2014, the World Trade Organization ruled against Chinese export quotas for rare earths, and China removed its industry caps in January 2015. The country also eliminated its export tariffs for rare earths in May 2015, leading to a further fall in REE prices. More recently, it banned the export of technology to make rare earth magnets.
The ongoing trade war between the US and China adds a layer of complication to the rare earth metals sector. Recognizing China's key place in the market, the US is undertaking various efforts to build its own supply.
In February 2021, US President Joe Biden signed an executive order aimed at reviewing shortcomings in the nation's domestic supply chains for rare earths, medical devices, computer chips and other critical resources. The next month, the US Department of Energy announced a US$30 million initiative to research and secure domestic supply chains for rare earths, along with battery metals such as cobalt and lithium.
In June 2022, Biden went even further, invoking the Defense Product Act to increase the domestic production of critical minerals such as rare earths, as well as to fund feasibility studies and expand existing resources. Furthermore, in September 2022, the Biden government announced US$156 million in funding to support the creation of "first-of-a-kind facility to extract and separate REEs and critical minerals from unconventional sources like mining waste."
Later, in July 2023, the Department of Energy put up US$32 million to build facilities for the production of REEs and other critical minerals from domestic coal-based resources.
Even with these efforts, China remains the heavyweight for now, so it’s important that investors interested in the rare earths space keep track of what the country is up to in terms of production.
Where to find rare earths prices?
Unlike prices for gold and silver, rare earth elements prices are hard to come by, as there is no widely used public exchange for rare earths. Firms such as Fastmarkets put out regular price assessments based on surveys of traders, consumers and other market participants; this information is available for a fee.
Price forecasts and other information can also be found via analyst firms and pricing forums such as Adamas Intelligence, Argus Media, Technology Metals Research and Asian Metal.
Which rare earths are the most important?
Rare earths are used in a range of different technologies, and demand is higher for some than others. They can be divided into “heavy” and “light” categories based on atomic weight, with heavy often being more sought after.
That said, light rare earths can be important too. Neodymium and praseodymium, used in rare earth magnets, fall into the light category. These and other elements used in rare earth permanent magnets, such as dysprosium, can be quite expensive. Neodymium and praseodymium have also been in the spotlight due to electric vehicles.
The concentration of different rare earths varies within each given deposit, but usually a deposit is dominated by either heavy or light rare earths, with some elements being much more abundant. Cerium, for example, is the most abundant rare earth, and is more plentiful in the Earth’s crust than copper.
Both cerium and lanthanum, used in things such as alloys in steelmaking and industrial catalysts, are oversupplied. As a result, they are priced quite a bit lower than most rare earth magnet materials.
Another group of rare earths to consider is those used in phosphors, or phosphorescent materials, which are the active component that adds color in fluorescent light bulbs and other lighting applications. Yttrium is fairly inexpensive when compared to more rare and therefore more expensive metals such as europium and terbium.
Rare earth concentrates and pricing
Think rare earths are easy to separate? Think again.
As mentioned, rare earths deposits contain various types of rare earths, not to mention a range of other impurities such as uranium and thorium, which can be troublesome to dispose of. The separation process can be difficult and lengthy, and so far separators outside of China have not managed to undercut producers within the country.
The best-known producer of separated rare earths outside of China is Lynas Rare Earths (ASX:LYC,OTC Pink:LYSCF), which owns and operates the Mount Weld mine in Western Australia and a separation facility in Malaysia. In 2023, Lynas received a US$258 million contract from the US Department of Defense to build a rare earths separation facility in Texas.
At the moment, California's Mountain Pass operation, owned by MP Materials (NYSE:MP), is the only working US rare earths mine and processing facility. The facility, which has a storied history, produces high-purity separated rare earth oxides, including lanthanum, cerium and neodymium-praseodymium oxide.
Other big companies developing REE separation operations include Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU). In Utah, the firm is completing Phase 1 REE separation infrastructure at its White Mesa mill, which will result in separated neodymium-praseodymium capacity of 800 to 1,000 metric tons per year.
According to Adamas Intelligence, "Elsewhere, projects across Sweden, South Africa, Australia and other countries aim to extract rare earths from mine waste and byproducts that could supply 8% of global demand successful."
It’s important to keep in mind that rare earths within a mixed concentrate won’t fetch as high a price as those that are already separated. When looking at technical reports from junior miners, be sure to check that companies have accounted for this discount when calculating their rare earths basket price, which is the price for all the rare earths bundled into a single number based on the distribution of different rare earths within the deposit.
This is an updated version of an article originally published by the Investing News Network in 2015.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energy Fuels is a client of the Investing News Network. This article is not paid-for content.
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